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Connecting Australia! Wireless Broadband

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Connecting Australia! Wireless Broadband The Parliament of the Commonwealth of Australia CONNECTING AUSTRALIA! WIRELESS BROADBAND HOUSE OF REPRESENTATIVES STANDING COMMITTEE ON COMMUNICATIONS, INFORMATION TECHNOLOGY AND THE ARTS NOVEMBER 2002 © Commonwealth of Australia 2002 Printed by CanPrint Communications Pty Ltd ii Foreword Wireless broadband has an important role to play in extending the reach of broadband services to all Australians. There is no one particular wireless broadband technology that can solve all telecommunications problems. The future will see a mix of various technologies and the market should be permitted to determine, over time, which ones best suit particular applications. The government should maintain a general regulatory policy of ‘technology-neutrality’ (not favouring any particular technology, whether it be wireless or wire-line). Specific measures should be put in place to extend the understanding and takeup of wireless broadband. The recommendations contained in this report reflect the broad observations and statements of principle set out above. If they are adopted by the government, they would greatly facilitate the expansion of wireless broadband services in metropolitan, regional and rural areas. The Committee also has made recommendations to assist the hearing-impaired gain access to wireless broadband services, to improve the regulatory framework and to preserve the power of police and intelligence services to protect the community against illegal activities. Many people contributed to this inquiry and, in particular, the Committee benefited from the 60 submissions and many witnesses who addressed us at our eight public hearings. Also, the Committee acknowledges the invaluable assistance of Professor Harris and Dr Borg (of the Plasma Research Laboratory of the ANU) who were contracted to produce a draft report. Chris Pyne MP Chair 23 October 2002 iii iv TABLE OF CONTENTS Membership of the Committee .......................................................... viii Terms of Reference .............................................................................. ix Executive summary .............................................................................. xi List of recommendations .................................................................... xv List of Abbreviations .......................................................................... xix 1. Introduction ................................................................................. 1 The challenge of digital wireless communication.......................... 1 What is broadband?...................................................................... 2 2. The terminology of wireless broadband................................... 5 How it works: the physics & engineering of digital wireless.......... 5 Issues affecting the choice of frequency..................................... 12 Quality of Service delivery .......................................................... 13 ‘The Last Mile’ ............................................................................. 14 Legal definitions important for digital wireless ............................ 15 3. The current rollout of wireless broadband technologies in Australia and overseas............................................................. 17 Wireless LAN .............................................................................. 17 3G ............................................................................................... 19 Bluetooth ..................................................................................... 22 Local multipoint distribution systems (LMDS) and Multipoint distribution systems (MMDS) ...................................................... 23 Fixed Wireless Access (FWA) and Wireless Local Loop (WLL) . 25 Satellite ....................................................................................... 26 Conclusion .................................................................................. 29 v 4. The inter-relationship of wireless broadband technologies .31 Background..................................................................................31 Bandwidth and data rates............................................................31 Noise and co-channel interference..............................................34 Carrier frequency and propagation..............................................35 Mobility.........................................................................................35 Conclusion...................................................................................36 5. Comparison of wireless broadband technologies and wire- line systems ...............................................................................37 6. The potential of wireless broadband, including for last mile solutions.....................................................................................41 Wireless as an alternative to wire-line broadband.......................41 Wireless broadband as an advance scheme prior to extension/rollout of wire-line services..........................................42 Wireless broadband “niche” services in metropolitan areas........44 Wireless broadband for mobile users..........................................44 Wireless broadband for the hearing-impaired .............................46 Wireless broadband in remote areas...........................................47 The potential to provide a last mile solution ................................48 New wireless technologies for rural last-mile links ......................49 7. Telecommunications regulation and wireless broadband technologies...............................................................................53 Licence fee requirement for 802.11 (and all ISM band) wireless Internet connection ......................................................................54 Distinction between wireless and wire-line carriers.....................57 Carrier licence exemption of non-commercial carriers ................59 Education about the options available under the law ..................62 Security issues.............................................................................63 Certainty in relation to access prices, terms and conditions .......65 Regulation of the local loop market and investment in wireless broadband....................................................................................66 Protection of the commons..........................................................68 vi The spectrum auction system ..................................................... 73 Tenure of licences....................................................................... 77 8. Future trends in the development and use of wireless broadband technologies .......................................................... 79 The integration of different technologies into the one physical device.......................................................................................... 79 Improved 802.11 ......................................................................... 79 Requirements for faster speed and wider pipes ......................... 80 What will happen with 3G? ......................................................... 80 Last mile and the potential of satellite......................................... 80 Convergence of technologies ..................................................... 81 Convergence of telecommunications, IT and broadcasting........ 82 Encouraging the development and use of broadband ................ 83 The limitations of physics............................................................ 83 Appendix A: Conduct of the inquiry .................................................. 85 Appendix B: List of submissions....................................................... 87 Appendix C: List of exhibits ............................................................... 91 Appendix D: List of witnesses............................................................ 95 Appendix E: Glossary........................................................................ 101 vii Membership of the Committee Chair Mr Chris Pyne MP Deputy Chair Mr Michael Hatton MP Members Mr Bob Baldwin MP Mr Chris Pearce MP Mr Steven Ciobo MP Mr Bob Sercombe MP Ms Sharon Grierson MP Mr Lindsay Tanner MP Mr Michael Johnson MP Mr Ken Ticehurst MP Committee secretariat Secretary Mr Paul McMahon Inquiry Secretary Mr Brendhan Egan Mr Rod Power Research Officer Mr Jerome Brown Administrative Officer Ms Lisa Kaida viii Terms of Reference To inquire and report on the current and potential use of wireless technologies to provide broadband communication services in Australia, including regional Australia, having particular regard to the following: • The current rollout of wireless broadband technologies in Australia and overseas including wireless LAN (using the 802.11 standard), 3G (eg UMTS, W-CDMA), Bluetooth, LMDS, MMDS, wireless local loop (WLL) and satellite; • The inter-relationship between the various types of wireless broadband technologies; • The benefits and limitations on the use of wireless broadband technologies compared with cable and copper based broadband delivery platforms; • The potential for wireless broadband technologies to provide a ‘last mile’ broadband solution, particularly in rural and regional areas, and to encourage the development and use of broadband content applications; • The effect of the telecommunications regulatory regime, including spectrum regulation, on the development and use of wireless broadband
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